ADMS 3510 Study Guide - Midterm Guide: Earnings Before Interest And Taxes, Net Present Value, Working Capital

• School: York University
• Department: Administrative Studies
• Course: ADMS 3510
• Professor: Gary Spraakman

Document Summary

York university fla&ps - school of administrative studies. Fall 2016 - sunday november 20, 6:00 pm -8:00 pm. Tax shield (0. 3 x 0. 3) x (2 + 0. 06) = 0. 250 x 0. 972 = 0. 243 (0. 3 + 0. 06 2(1 + 0. 06) Expense outlay, year 1 (25 x 0. 7 x 0. 9434) Expense outlay, year 2 (25 x 0. 7 x 0. 8900) Operating cost reductions (40 x 0. 7 x 8. 3838) Added revenue (30 x 0. 5 x 0. 7 x 8. 3838) Variable costs: sales price variance (5 marks) = (actual sales price budgeted sales price) x actual sales volume. = (17 19) x 18,000 = -36,000 u. 10 share percentage: market volume variance (5 marks) = (actual market volume budget market volume) x anticipated market x budgeted contribution. = (85,000 90,000) x 7,000 x (10-4) = -5,000 x 0. 0777 x 6 = -2,333. = 10,000 x 0. 1875 x 10 margin per unit. = actual sales quantity (actual mkt volume x anticipated mkt share %) x budgeted cm/unit.